Egypt finalized the long-awaited State Ownership Policy, which identifies the sectors from which the state plans to withdraw, decrease, or increase its involvement of over the next 3-5 years, and how it aims to boost the private sector’s participation in public investments.

President Abdel Fattah El Sisi approved the final draft of the document on Thursday, with the document to be implemented gradually, according to an official statement.

Prime Minister Madbouly noted that the state’s withdrawal from designated economic activities will depend on a variety of factors.

The state will be stepping down from 62 sectors while decreasing its participation in 56 sectors, and increase its role in 76 others, the cabinet wrote. In its initial draft plan in early 2022, the state aimed to exit from 79 sectors and reduce its involvement in 45.

The government says it will reduce its involvement in a number of sectors via public share offerings, stake sales to strategic investors, and expanding public-private partnerships.

The document also emphasizes the state’s priorities of increasing the participation of the private sector to stimulate economic growth, increase exports, and provide employment opportunities and investments, the prime minister added.

The document explained that the state aims to expand the private sector’s participation in the public sector to 65% within three years from 30%, and attract $40 billion in private investments by 2026.

The state seeks to increase the rate of investments by 25-30% to reach economic growth of around 7-9%.

The State Ownership Policy also noted that the state will now increase its involvement in oil and gas extraction and refining; electricity transmission networks; establishing dry ports; and Pre-primary education.

The document pointed out that the state will be fully exiting from some financial brokerage activities including commercial insurance, and wholesale trade.

Madbouly explained that a committee will be formed to implement the strategy, including determining the exit mechanism for industries and a timeframe. The PM will head the committee which will include several ministers, as well as the heads of the Egyptian Competition Authority, the General Authority for Investment and Freezones, the SFE, and the cabinet’s Information and Decision Support Center.